The sale of managing general agency Velocity Risk Underwriters LLC by Bermudian-headquartered ILS fund manager Nephila Capital has closed.

The catastrophe-focused property and specialty insurance risks MGA, which was founded by Nephila in 2015, has been acquired by funds managed by Oaktree Capital Management LP, a global investment manager specialising in alternative investments.

The transaction, first announced in December, was finalised on February 1. Details of the agreement will not be disclosed.

Nephila has retained a minority interest in the company.

Velocity Risk, which is headquartered in Nashville, Tennessee, provides insurance coverage to clients in catastrophe-exposed areas of the United States.